LendingClub Corp Q3 FY2021 Earnings Call

Good afternoon, and welcome to the LendingClub’s Third Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode. After today’s presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Sameer Gokhale, Head of Investor Relations. Please go ahead.

Thank you, and good afternoon. Welcome to LendingClub's third quarter 2021 earnings conference call. Joining me today to talk about our results and recent events are Scott Sanborn, CEO; and Tom Casey, CFO. You can find the presentation accompanying our earnings release on the Investor Relations section of our website. On the call, in addition to questions from analysts, we will also be answering some of the questions that were submitted for consideration via e-mail. Our remarks today will include forward-looking statements that are based on our current expectations and forecasts and involve risks and uncertainties. These statements include, but are not limited to, the benefits of our acquisition of Radius, platform volume, future products and services and future business and financial performance. Our actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are described in today's press release and our most recent Forms 10-K and 10-Q, each filed with the SEC, as well as our subsequent filings made with the Securities and Exchange Commission, including our upcoming Form 10-Q. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. And now, I'd like to turn the call over to Scott.

All right. Thanks, Sameer. Good afternoon, everyone. Our third quarter results again make very clear the power of our digital marketplace bank to generate strong, sustained performance. We, once again, achieved record revenues, up 20% sequentially, and we nearly tripled our earnings versus the second quarter. We delivered these results by leveraging our data advantage, our large and loyal member base and our vertically integrated business model. With an enormous market opportunity of roughly $1 trillion in revolving consumer loans outstanding, we have a clear path forward to further grow our personal loan business while helping our members lower their cost of credit. Our 3.8 million members appreciate the value we deliver and they want to do more with us. With our new digital banking capability, we can offer more. Our advantages are considerable and difficult to replicate and we are beginning to use them to grow our adjacent auto refinance and purchase finance businesses. When we launched back in 2007, LendingClub's vision was to leverage technology, data and our marketplace model to transform the banking industry. We began by bringing a traditional credit product, the installment loan into the digital age by moving it online, broadening access, lowering costs and delivering a fast and frictionless experience for borrowers, all while delivering attractive risk-adjusted returns for loan investors. At its core, extending credit is a data problem. At LendingClub, we have a data advantage. We use machine learning to develop and/or power models across the loan life cycle including marketing, fraud prevention, credit underwriting and servicing and collections. These models are trained on more than 150 billion cells of data and more than a decade of experience across over $68 billion in loans. Our effectiveness is evident in our recent results. Our marketing expenses as a percentage of originations during Q3 were only 163 basis points. That's one of the best in the industry. Our overall loan portfolio has 35% lower delinquency rates compared to the competitive set. And for those vintages most affected by COVID, the results are even more dramatic with delinquencies 50% lower than others. Our fraud losses are less than 5 basis points, among the lowest in the industry. And all of this is accomplished in a highly efficient fashion, with more than 80% of our issued loans now fully automated. All of these results are in service of the customer where we're typically lowering the cost of credit for our members by about 400 basis points versus their outstanding credit card debt. The savings and seamless experience we deliver creates loyalty. Already half of our members have come back to us for a second loan. When they return, they're rewarded with an even better experience than their first time. LendingClub is in turn rewarded with better economics that these loans originate at a fraction of the cost compared to loans to new members and demonstrate lower credit risk. This is the dynamic for our core products but we can do more for our members beyond personal loans. We can offer additional products and services to them that are aligned with their needs, saving their money and increasing their loyalty while also increasing the lifetime value of these relationships. One example of this is auto loan refinancing. Nearly 2/3 of our members currently hold an auto loan, and it's usually their second highest monthly debt outside of housing costs. Given the structural inefficiencies in the used car market, we can efficiently utilize our data and technology to offer customers a better rate in just a few minutes. We typically reduce the APR for our members by more than 5%, which translates into thousands of dollars of savings over the life of a loan. We've built a great product but have been disciplined about the investment and growth rate of the auto business. During our incubation period, we've been focused on 2 objectives: one, building an incredible customer experience; and two, demonstrating a track record of performance. Now with the added funding benefit of our bank, we're able to generate positive unit economics. And in Q3, we drove 85% quarter-over-quarter growth in auto refinance originations. Our current focus is on our members; the $300 billion broader addressable market for auto refinance does provide us with a substantial long-term opportunity. Next up is our Buy Now, Pay Later purchase finance business which is designed for planned large ticket purchases in elective medical, dental, and education. We've been in this business for several years through issuing bank partnerships and are now deploying our banking capabilities to issue these loans and take better advantage of our personal loans infrastructure. This will allow us to not only capture more of the value chain economics but also significantly improve the member experience. I'll plan to talk more about this business next quarter. Going forward, you'll hear more from us every quarter about how we're leveraging our expertise and our advantages to offer our member base a broader set of integrated financial solutions. During the third quarter, we added more than 100,000 members to our base to bring us to a total of 3.8 million. We're creating a powerful flywheel effect that will help our loyal and member-growing base with additional financial solutions that save them money while also increasing their lifetime value to us. This, in turn, helps us continue to drive strong and sustainable revenue and earnings growth, which opens up more opportunity for us to invest in customer acquisition as we offer them more reasons to join the club. As you've seen in our results this year, the investments and choices we made in 2018, 2019, and 2020 have been paying off, not just the decision to acquire a digital bank with the lowering of our operating costs and our strategic investments in data, technology, and digitization, all of which are bearing considerable fruit. Over the next 12 to 18 months, we plan to accelerate our growth investments, particularly in infrastructure and new products while continuing to grow our profit. We expect these investments to enhance our ability to serve our members and to drive sustainable growth to our top and bottom line over time. I want to thank our employees for their commitment to our customers, our company, and our mission. We would not have been able to achieve these results without their dedication and hard work. So with that, I'll turn the call over to you, Tom, to take you through the financial results for the third quarter and our outlook for Q4.

Thanks, Scott. Our marketplace model is more profitable than it's ever been. Before I dive into the detailed results for the quarter, I want to show you how we have transformed the financial profile of the business. As you can see on Page 13 of our earnings presentation, we originated loans of $3.1 billion this past quarter, which is comparable to the fourth quarter of 2019, the final quarter prior to the pandemic and before our marketplace bank model was in place. Now with the marketplace bank, we generated $58 million of higher revenue and $27 million of incremental earnings compared to our prior model in the fourth quarter of 2019. This reflects our numerous strategic decisions over the last 3 years, the advantages of the bank, as well as our efforts to improve the efficiency of our business. Another item I want to highlight is the impact loan retention had on the quarter's results. During the third quarter, we retained $636 million of loans or about 20% of originations, in line with our 15% to 25% target. As a reminder, growing our loan portfolio reduces reported earnings during the quarter due to the deferral of net origination fees as well as upfront CECL provisions. You'll see on Page 2 of our earnings press release that these 2 items negatively impacted our earnings by $51.5 million in the quarter. However, we are investing in future revenue by retaining loans, creating a highly profitable and recurring revenue stream that enhances the sustainability of our revenue and earnings growth. Now let me take you through the details of our financial performance for the third quarter. At the start of 2021, we pointed out that with the addition of the digital bank, our revenue would start to grow faster than originations, and we saw that again this quarter. Total sequential revenue growth of 20% for the quarter primarily reflects a 15% sequential increase in marketplace revenue and a 42% sequential increase in our recurring stream of net interest income from loans held for investment. Let me talk a little about the increase of each of these revenue drivers separately. We've added pages 9 and 10 of our earnings presentation to help illustrate these drivers. First, you'll see on Page 9 that the 15% increase in marketplace revenue was in line with the growth in loan originations during the quarter as well as strong investor demand for loans. Our recovery revenue stream for retained loans grew 42% as the mix of consumer loans increased during the quarter. You'll see on Page 10 of the earnings presentation that our average consumer loan balances grew by over $400 million to $1.5 billion. Average commercial and PPP loans decreased by 15% or $186 million, primarily reflecting the continued runoff of PPP loans. I should remind everyone that while the PPP loans are decreasing as expected, the rollout of the bank's program was very successful and speaks to the effectiveness of its digital capabilities. Our bank was able to process a huge volume of applications, disburse funding very efficiently without any operational challenges. Average total deposits grew 7% sequentially to $2.6 billion and deposit costs remained roughly flat for the second quarter at 30 basis points. As the mix of our consumer loan grows, we expect our net interest margin will continue to expand. On Page 11, you see that our growing consumer loan portfolio was the primary driver of the 160 basis points increase in our net interest margin to 7.1%. Provisions for credit losses increased 8% sequentially to $37.5 million, primarily reflecting the increase in retained loans during the quarter. Net charge-offs remain low at $4.3 million and are mostly from the legacy Radius portfolio. As the consumer portfolio starts to season, we will start to see our charge-offs normalize, but we're comfortable with our reserve levels as our loss provisions are intended to capture estimated life of loan charge-offs upfront. Now let's turn to expenses and how we're driving positive operating leverage. Our sequential revenue growth of 20% outpaced total noninterest expense growth of 12%. Importantly, the increase in expenses was driven almost entirely by investing in consumer acquisition, which was the big driver of origination growth in Q3. These new customers come back to us over time and provide future revenue growth and operating efficiencies. Repeat members typically demonstrate better credit performance at lower acquisition costs, thereby driving higher lifetime value for us. As we continue to help our members over time, their loyalty also creates attractive economics for us, which in turn helps us deliver more savings to them, creating a virtuous cycle. This is especially true given our data advantages, vertically integrated model, and strong member loyalty, which enabled us to capture more of the economics. All other expenses were roughly flat with last quarter. We're also pleased to see the operating leverage of our new business model reflected in our core earnings results. Net income for the quarter was $27.2 million, up roughly 3x sequentially. We believe that our investment in the digital bank that started almost 3 years ago and the financial performance we produced to date in 2021 is a great example of the power that smart investments could have on a business. We also know that it's critical for us to continue to innovate and build upon our leadership position. As such, we want to capitalize on the powerful economics of our business model and strong capital generation to invest in 3 areas of the business: first, building our consumer loan portfolio to grow and diversify our revenue; second, investing in marketing to drive new member acquisitions; and three, further investing in our technology and infrastructure to build new products and services for our members. We'll provide updates as we make progress on each of these initiatives over the coming quarters. Next, let's turn to our financial outlook. Our guidance assumes continued but moderating economic growth and normal seasonality we typically see in the fourth quarter and the first quarter of each year. Specifically, in the fourth quarter, we tend to see a decline in application volumes during the holiday season and lower demand also persists into the first quarter as tax refunds reduce borrower demand. Our guidance also incorporates the revenue and expense impact from increased investments in the 3 areas I just described, building the portfolio; marketing to new customers; and incremental infrastructure and technology initiatives. Specifically, our strong and sustainable year-to-date results have again allowed us to raise our guidance. We are increasing our full-year revenue guidance to a range of $796 million to $806 million, up from $750 million to $780 million, implying a Q4 guidance of approximately $240 million to $250 million. We're also raising our full-year origination guidance to a range of $10.1 billion to $10.3 billion, up from $9.8 billion to $10.2 billion, implying Q4 originations between $2.8 billion and $3 billion. Finally, we're raising our full-year net income guidance to a range of $9 million to $14 million versus a loss of $3 million to $13 million. This implies a net income to be in the range of $20 million to $25 million. Again, we're very pleased with the results we're already experiencing from the transformation to a digital marketplace bank. The investments we've made over the last 3 years are clearly paying off, and we look forward to delivering sustainable growth and profitability for our investors over the long term. With that, we would like to open the call for questions.

Our first question today comes from Henry Coffey with Wedbush.

Congratulations on another great quarter. This has done amazing wonders for investors. A couple of questions, and then I'll go back into the queue. You've got $65 billion worth of originations, 3.8 million customers, $2.9 billion in deposits. Can you start to give us any thoughts about how this all merges together into kind of 1 neobank? Right now, you have this great treasury function that can go to the bank whenever it needs assets, and you have this really super profitable bank. But as these 2 sides of the equation start to play together, you've got this massive customer base. What preliminary thoughts do you have about getting everybody to work together on a product and revenue front and what kind of cross-sell opportunities are there between the bank and the club, et cetera?

Thank you, Henry. It’s Scott here. You’re right. Our core business, where we hold a leadership position, forms the basis for a highly profitable digital bank with significant growth potential, both in the market outside us and in our capability to generate revenue and earnings that exceed the growth in loan originations. As Tom mentioned earlier, our strategy involves taking the net income we generate and investing it into future earnings growth. This growth will focus primarily on expanding our loan portfolio, increasing our customer base, and introducing new products. Regarding new products, we’ve previously shared that over half of our customers return to us for a second loan, demonstrating the positive experience we’ve created for them. We're now actively engaging in the auto lending sector, pulling it into the bank, where the lower cost of capital and our strengthened balance sheet allow us to achieve positive unit economics, facilitating investment and growth in that area. This will enhance the lifetime value of our customers. Additionally, as we integrate the purchase finance business into our platform, we see opportunities for cross-selling. Current customer acquisition mainly flows through providers for payment-related services, not just refinancing credit card debt but also financing procedures. Once we onboard these customers, we can offer them more services. Looking ahead to next year, you’ll notice our focus on credit products, which align with our company’s core, as our customers are frequent credit users and seek more offerings from us. Once we integrate these three businesses, which we already had before the bank acquisition, we will leverage the bank's benefits and explore other categories, including helping customers manage their spending and savings and enhancing our member rewards checking experience from Radius. This will likely be a topic of discussion in the coming year, but for now, our priority is to incorporate these lending businesses into the bank.

My second question pertains to efficiency, particularly regarding the bank, which constitutes about 30% to 40% of your earnings and roughly 40% of your equity capital. I’d like to compare it to a similar institution that lacks the commercial loans your bank has. For example, Discover offers a broad array of consumer products, similar to your plans. Discover has a high return on equity, but its efficiency ratio is around 67%, while Discover's was approximately 36% for the first nine months of the year. Considering this comparison, as Radius evolves more into a consumer lender for LendingClub, given the efficiencies found in those kinds of origination businesses, could you provide insight on the potential improvements in profitability we might expect from the bank? What are your thoughts on the eventual return on assets for that business, and how do you see the bank's efficiency ratio progressing over time?

Henry, this is Tom. Yes, we came in at 67.5% this quarter, which puts us in amongst some of the better banks and better financial institutions. But you can see the growth we're experiencing can further bring that number down. We haven't given a specific target, but you can see that in just 2 full quarters of ownership, we're seeing significant improvements as we remix the balance sheet, as we continue to see fee income from our lending business, the returns are already in the mid-20s. We're benefiting from the tax NOL that we've chatted about in other meetings. And so we think there's additional opportunity here. We're not ready to give specific targets. But as Scott said, we're going to be taking some of the additional margins and reinvesting them back into the business; that gives us more confidence on our top-line growth. We think their revenue growth is important and growing our membership base is important, and all those things continue to drive ongoing repeatable earnings for the company. It's a new model. We've only shown you 2 quarters. We'll continue to keep you informed on how we're thinking about the level of profitability as we head into next year. But we feel very good about where we are and how the business has recovered nicely. And keep in mind, it's not just the bank; as we tried to communicate to you, this is really multiple years of activity. We resized the organization pretty significantly over the last few years. We continue to be well below our peak as far as headcount, for example, and our expense levels are much lower than they were even on a standalone basis. So you're seeing some of that come through as well. It's not just the acquisition of the bank.

Yes. But when you look at the bank and the net interest margin is in the 7s, but watching with 25, 30 basis point cost of funding, which may deposit costs, could go up to 50 basis points, and all of this would still be true and you're layering on more high-yield consumer loans. The losses are very, very low on those assets. When we look at that, how that flexes, it won't be surprising to see that margin closer to 10%. And it won't be surprising to see the efficiency ratio clearly at the bank level at least 1/3 lower. And I mean the contribution from the bank side suddenly becomes very big and very dramatic sometime over the next couple of years. And obviously, the more help we can get in putting pencil to those numbers, the better. But it looks like it's moving in the right direction. Anything specific about loan quality? The chart on delinquencies is very helpful and instructive.

Yes. What I'd say, Henry, is the industry broadly has experienced pretty pristine results. We, in particular, as we show in those materials are outperforming the industry. The thing that I would want to make sure you heard is that in our underwriting, in our pricing, and most importantly, in our reserves, we're not assuming that, that environment continues. We're actually assuming in all of those things that we're doing today that we are back at pre-COVID levels of borrower performance. So the results right now are actually above what we had put into our own outlook.

Next question comes from Giuliano Bologna with Compass Point.

To start off, I would like to ask about your decision to retain approximately 20% of loans this quarter, which aligns with your previous guidance. Given that you are generating more capital than anticipated, is there an incentive to increase the percentage of loans you are retaining? Considering you are in a unique position to build capital, and as the loan growth rate is expected to slow as the portfolio matures, would you consider growing that percentage to 25 or more to accelerate the expansion of your balance sheet?

Julian, just to put some numbers around your question, we do commit at 14.1% capital, so you're absolutely right. With the additional earnings we're generating, that allows us to put more capital to work. We're very pleased with the performance in the third quarter. That's why in our guidance, I called that out specifically that's an area for us to continue to invest in that creates more ongoing revenue. Keep in mind that when we put a loan on the books, we earn about 3x as much as selling a loan. So there's clearly motivations to do that. As the benefit of us being able to ebb and flow in that range of 15 to 25. And with the capital we've got to deploy, you'll probably see that over time. And we're trying to manage to make sure that we're keeping our capital deployed as efficiently as we can.

I'm interested in what you're seeing regarding delinquency rates and how they compare from a roll rate perspective. Specifically, what changes have you noticed in 30-plus and 60-plus delinquencies? I understand that the book is still developing, so there’s a lot of activity, but I'm curious about the sequential data you have in this area.

Yes, as I mentioned earlier, our year-on-year delinquencies are down by about 30%, and they have remained flat quarter-on-quarter. This is based on our overall servicing portfolio. However, regarding our underwriting and the new book we started building on our balance sheet in Q1, it's too early to draw any significant conclusions. That said, we are meeting our expectations in that area and may even exceed them.

That sounds good. I understand there is a significant impact from a servicing perspective during growth. The servicing book increased by just under 10% but saw a meaningful sequential growth. I'm interested to know if, excluding growth, those numbers remain roughly flat or show a slight increase, especially since growth may dampen the effects of newly originated loans added to the portfolio.

Giuliano, we are keeping track of this by individual vintages. Scott is providing you with an overall perspective, but we are monitoring the vintages closely. Therefore, we are not observing any averaging. We are very optimistic about all the vintages from the first, second, and third quarters as they are all aligned. Additionally, there isn't any significant stacking issue that you might consider blending in our allowances. We increased our allowances by another 5.25% this quarter, in accordance with CECL, just like we did in the previous quarter.

That sounds good. I was also curious about one of the strategic points regarding increasing marketing efforts and expanding the balance sheet. There is some data available regarding changes in demand for direct mail. While I find the data interesting, it is not always completely reliable, but it seems that we have reduced our direct mail efforts compared to many of our competitors in the industry. I'm wondering if you are noticing any changes in direct mail or if this is simply a shift towards other channels. What factors could be influencing changes in your marketing strategy and channels?

I'd say the biggest thing for us is that last year we pulled back from most marketing channels to focus on serving our existing members who needed credit. This year, we're re-engaging and adjusting our strategies for each channel, including our targeting and response models. Overall, we're quite pleased with what we're observing. As I've mentioned before, it's a competitive market, and we expect it to remain so, but we feel strong about our position because we have more data than anyone else. This allows us to capture more economics through both fee revenue and net interest income. We can leverage the initial loan to encourage repeat behavior and enhance lifetime value. So, we're optimizing our approach for each channel. Any changes you notice are more about our channel optimization rather than indicating a broader trend.

Our next question comes from Steven Kwok with KBW.

I guess I have 2 questions. One was just around the yield on the unsecured personal loans. It seems like the yield ticked up again about 70 basis points sequentially. Could you just talk about the drivers there and what led to the sequential increase and how we should think about it going forward?

Steven, it's Tom. What we've been doing all year is if you think about what portfolio and the volume we had in the first quarter and then where we are today, where we've gotten to now $3.1 billion. And so as we open it up channels, we now have a more representative sample of our entire prime portfolio, what you're just seeing is that normal evolution of the growth and the mix going into paid channels, as Scott mentioned, recovering in some of the channels that we had exited in 2020. And now you're starting to see kind of that normalized yield portfolio going in. So it's just a normal progression of the average mix of our loans that typically go to banks. So we're a representative sample of those loans that we sell to banks. So that's just the evolution of the growth in the market.

And said another way, we don't expect it to change much from there. It's just us at this point having the market mix actually. I don't know if we talked about it, Steven, in the call, but just a reminder, what we're holding is prime consumer loans, same loans we sell to a few dozen community and regional banks, customer you're talking about here has an average FICO of about 715. Income is on the low end of high income or the high end of middle, somewhere in the $90,000 to $100,000 range for individual income and you're talking about average loan sizes of, call it, $14,000, $15,000. Main use case is to pay off credit card debt. And then on average, we're lowering the cost there for them by about 400 basis points.

Understood. And then just following up on the marketing side. You mentioned that it was up 160 basis points of origination. And if we go back to the last 2 prior quarters, it was running more like 130 basis points. Are you guys just leaning more into marketing to drive the origination growth? I'm just curious as to what you're seeing around the competitive landscape and how we should think of that 160 basis points going forward?

Yes. If you look back a bit further, when we consider how we are managing our spending and our balance of new versus repeat members, after a period of conservatively approaching external marketing last year, we have significantly increased our efforts and are now focused on acquiring new customers to expand our member base. This quarter, we added approximately 100,000 new customers. Looking at our historical marketing costs as a percentage of CPI, you will observe that we were approaching a different level.

Yes. Saving money on the issuing bank, for example, provides us with better economics.

Our next question comes from John Rowan with Janney.

You reported a 7% net interest margin in the quarter. I want to take a step back and ask if we still consider 7% to be the appropriate figure going forward, factoring in the provision expense. We previously discussed targeting a 9% margin, minus a 2% provision expense. Is that still the long-term goal for the bank?

So the net interest margin doesn't have any impact on the provision. We do expect it to continue to go up as we increase the mix of consumer to commercial. Obviously, that's the largest growth that we have and also the highest net interest margin. So that is expected to go a little bit higher as we continue to remix the balance sheet. With regard to the provision, kind of given everyone an indication that we are on CECL, we are putting these reserves up on day 1. And so you have the timing issue between the recognition of the provision and the interest income. So we continue to accrue at about 5.25%. I think we did this quarter on originations that we retained. So I think this is a pretty good frame. I think we've done now a couple of quarters in a row and start to give you a frame of what you can expect. It will get a little complicated because we'll start to have some charge-offs and we'll be adding new loans, but I'll be breaking those out for you so you can see the roll forward. But right now, the portfolio is performing very, very well as we indicated, and I do expect net interest margin to inch up a little bit.

And okay. So just back to your comment, what do you expect the long-term charge-off rate to be in the portfolio?

So the charge-off rate is still going to be somewhere as the loss rate is still going to be in that somewhere. It depends on the quality, obviously. But overall, it's probably going to be in the 5% to 7% range, depending on where we are in the various qualities. But overall, that's kind of a little bit higher than we've given you in February, but consistent generally where we think long-term it will be.

At this time, I'm showing no further questions on the line. So I'd like to turn it over to Sameer to take some questions submitted from our retail investors.

Great. Thanks, Eiley. There are a couple of questions that came in through the inbox that we can just go through. I'll paraphrase here. The first one was asking why we don't license our algorithm and data analytics to other banks and credit unions to earn service?

Yes. So an interesting question. That's certainly willing to confirm we certainly have something that is of a lot of interest to banks, which is the ability to assess the credit risk and efficiently underwrite it. And the way we've chosen to work with banks is that when we make loans available to them to hold on their balance sheet, they are taking, therefore, the credit risk in exchange for earning the income. So that is 40% to 50% of our funding that way. Turning this into a software-as-a-service business, that's a different business and no criticism of it. It's a great business, it's just very different. Our focus is on building the direct-to-consumer franchise, really leaning into the customer base that is this very creditworthy high-income customer who is a reasonably heavy user of credit and surrounding them with value-added services. Therefore, for us being able to actually own that customer relationship, being able to communicate with that customer and kind of help them on their financial journey is where we're going to be investing.

And then the other question that came in was whether LendingClub has any plans to offer other innovative and unique customer products?

I guess the short answer is certainly, yes. We touched on it on the call today. Like I said, first priority this year is pulling our lending products into the banking infrastructure because that both gives us cost efficiencies. It gives us incremental revenue and it allows us to leverage the full power of our platform, our data science platform, servicing platform, our payments, all of the things we do to drive loan performance. But as we look into next year, we'll come back and talk about. We see over time a broad range of products, helping our customers manage their lending, spending and savings.

Terrific. Well, with that, I think we'll end the Q&A on this call. Thank you all for joining us on the earnings call today. If you have any follow-ups, please contact the Investor Relations team, and we'll be able to help you out. Thank you.

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.